Phil Kearns issues SMSF warning

Centric Wealth chief executive Phil Kearns has warned that the rapid growth of the self-managed super sector could cause long-term problems for retirees and the nation’s budget.

The self-licensed planning firm’s CEO said recent figures from the Australian Tax Office and SMSF Professionals’ Association should are a worrying sign – particular the SPAA finding that an additional 1.4 million people are considering setting up an SMSF.

“This will mean the number of self managed retirees will swell to almost 2.5 million,” Mr Kearns said.“Is it likely that all these people will have the knowledge, experience and time needed to manage their SMSF effectively?

“In my view, this could create a number of problems for the individuals and the government, who may end up financially supporting these people down the track.”

Mr Kearns said the government needs to provide more education to prospective SMSF trustees.